In the present work, reduction of iron ore pellets with domestic lignite coal in a semi-pilot scale rotary tube furnace was investigated. The variables of the experimental study were the coal consumption ratio (C-Fix/Fe-Tot), the temperature of the environment and the residence time. At the temperature of 1000 degrees C and a coal consumption ratio of 0.40, reduction process was completed at about 90 minutes residence time where the pellets showed 93% average metallization degree. The results of the experimental study showed similarities with industrial practice.